# Slashing with delegation staking

## How slashing works currently
- Slashes are deferred by 28 eras.
- Slash Reward Fraction = 10% (both dot and kusama)
- When applied after 28 eras, it slashes ledgers of validator and nominators. If it could not slash everything, it deducts overslash from reporter reward.
- Pay reward and send rest of slash_imbalance to treasury.

## With delegation Staking

Slashes are lazy. Which means we may not be able to apply all the slash at start of the scheduled slash era.

Few things we can do going forward:

#### One
- Never deduct reporter reward if there is an overslash. Good chance then reporter reward is paid.
- Later when slashes are applied, all of it is sent to treasury.

#### Two
- Compute reward payout at the time of applying slashes, basically 10% of slashing imbalance. (Currently, reward payout is calculated pre-emptively at the time of offence).
- Pay 10% (or some other number) to whoever applies these pending slashes via permissionless call through NP.

#### Three
- Variation of 2, once an `unapplied_slash` record is applied, but with some slash missing, keep it around in another map (pending_slashes). This is tricky as we can't keep this history forever so need to make sure all pending slashes are applied in a bounded time.
- Whenever slash is applied lazily for delegatee accounts (pool accounts), 10% of the slash is paid to the reporters + caller, rest goes to treasury.